RSS Content

CHANTILLY, Va.--(BUSINESS WIRE)--Jan. 30, 2017--
Engility Holdings, Inc. (NYSE: EGL) (the “Company”), today announced
that it is seeking to reprice its $195 million current principal
outstanding B1 term loan maturing in 2020, and its $608 million current
principal outstanding B2 term loan maturing in 2023. If the repricing is
successful, the interest rates on the terms loans will be reduced. All
other terms and conditions under the Company’s senior secured credit
facility are expected to remain generally the same. The Company
anticipates the repricing transaction will be completed in February
2017. However, there can be no assurance that the Company will complete
the transaction, which is subject to market and other customary
conditions.

The Company also announced that it has made total principal payments of
approximately $37 million since the end of the third quarter of 2016.
These principal payments are reflected in the above term loan amounts.

Fiscal Year 2016 Guidance

In addition, the Company announced that it is reiterating its 2016
revenue, adjusted diluted EPS, adjusted EBITDA and operating cash flow
guidance ranges it issued on November 1, 2016. The Company is
reiterating its fiscal year 2016 GAAP diluted EPS guidance range,
excluding an anticipated non-cash goodwill impairment charge estimated
to be less than $10 million and the associated tax impact. As disclosed
in the Company’s Form 8-K filing on January 9, 2017, the Company expects
to incur this charge as a result of the sale of its international
development services business, International Resources Group Ltd. (IRG).
The table below summarizes the Company’s fiscal year 2016 guidance.

(2) GAAP diluted EPS assumes a full-year tax benefit of
approximately $2 million and excludes any impact from an anticipated
non-cash goodwill impairment charge estimated to be less than $10
million and the associated tax impact. GAAP diluted EPS also includes
approximately $28 million of bank transaction fees associated with its
August 2016 credit facility refinancing and the non-cash write-off of
previously capitalized fees associated with Company’s prior credit
facilities. Operating cash flow guidance includes $22 million in cash
transaction fees associated with its August 2016 credit facility
refinancing, offset in part by $9 million in cash interest expense
savings from August 15, 2016 through December 31, 2016. Adjusted diluted
EPS is positively impacted by this $9 million cash interest expense
savings.

About Engility

Engility (NYSE: EGL) is engineered to make a difference. Built on six
decades of heritage, Engility is a leading provider of integrated
solutions and services, supporting U.S. government customers in the
defense, federal civilian, intelligence and space communities. Our
innovative, highly technical solutions and engineering capabilities
address diverse client missions. We draw upon our team’s intimate
understanding of customer needs, deep domain expertise and technical
skills to help solve our nation’s toughest challenges. Headquartered in
Chantilly, Virginia, and with offices around the world, Engility’s array
of specialized technical service offerings include high-performance
computing, cybersecurity, enterprise modernization and systems
engineering. To learn more about Engility, please visit www.engilitycorp.com
and connect with us on Facebook, LinkedIn and Twitter.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding Engility’s future prospects, projected
financial results, estimated integration costs and acquisition related
amortization expenses, business plans, as well as the TASC transaction
and its expected benefits and the timing of such benefits. Words such as
"may," "will," "should," "likely," "anticipates," "expects," "intends,"
"plans," "projects," "believes," "estimates" and similar expressions are
also used to identify these forward-looking statements. These statements
are based on the current beliefs and expectations of Engility’s
management and are subject to significant risks and
uncertainties. Actual results may differ from those set forth in the
forward-looking statements. Factors that could cause Engility’s actual
results to differ materially from those described in the forward-looking
statements can be found under the heading "Risk Factors" included in our
Annual Report on Form 10-K for the year ended December 31, 2015, and
more recent documents that have been filed with the Securities and
Exchange Commission (SEC) and are available on the investor relations
section of Engility’s website (http://www.engilitycorp.com)
and on the SEC’s website (www.sec.gov).
Forward-looking statements are made only as of the date hereof, and we
undertake no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. In addition, historical
information should not be considered as an indicator of future
performance.